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These countries hold the majority of US Treasuries

In view of the trade war and the increasing political tensions between Beijing and Washington, economists are critical of China’s position as one of the United States’ big believers. If the conflict escalates, China could sell its US Treasuries in one fell swoop, causing turmoil in the markets.

China has recently invested more heavily in Japanese government bonds. During the summer months, the People’s Republic bought government bonds worth $ 20.9 billion. Between April and June, China had already spent almost US $ 13.8 billion on Japanese bonds. According to Chinese media, the downward trend in US Treasuries could continue as China increasingly banks on diversification.

There is no shortage of buyers for US Treasuries. In order to strengthen the US economy during the Corona crisis, the US Federal Reserve also announced purchases of US Treasuries worth billions in the spring. Besides China, these are the United States’ biggest creditors:

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